How can I get rid of non-cancelled mortgage debt after a short sale?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
How can I get rid of non-cancelled mortgage debt after a short sale?
My short sale (on my 2nd home) closed almost 10 months ago. The sale resulted in a $200K deficiency for the 1st mortgage, which the lender has now submitted to a collection agency. I cannot afford to pay this, and that’s why I proceeded with the short sale in the first place. What would be my available options in dealing with this debt?
Asked on July 26, 2011 California
Answers:
M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
I am so sorry for your situation. The key to having the lender agree to the short sale is to make sure that they waive the deficiency, this way they can not come after you. The reason that you probably had no problem getting them to agree to sell the property for so much less than the mortgage price is because they did not waive it and now they can come after you personally for the money. I would strongly suggest that you seek help either negotiating the debt or that you seek help as to you options to extinguish it, like bankruptcy. They will not go away unless and until you do something about it all. Good luck to you.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.